Original scientific paper

On a retailer’s EOQ in a supply chain with two-level trade credit

Po-Shun Chen ; Department of Marketing and Logistics Management, Chaoyang University of Technology, 168, Jifong East Road, Wufeng, Taichung 41349, TAIWAN
Yung-Fu Huang ; Department of Marketing and Logistics Management, Chaoyang University of Technology, 168, Jifong East Road, Wufeng, Taichung 41349, TAIWAN
Wen-Kuo Chen ; Department of Marketing and Logistics Management, Chaoyang University of Technology, 168, Jifong East Road, Wufeng, Taichung 41349, TAIWAN
Chao-Kuei Huang ; Department of Industrial Engineering and Management, Cheng Shiu University, Kaohsiung, TAIWAN

Abstract

Recently, Teng and Goyal [Journal of the Operational Research Society, Vol. 58, pp. 1252-1255, 2007.] extended and modified Huang’s model [Journal of the Operational Research Society, Vol. 54, pp. 1011-1015, 2003.] to develop their model and established the proper theoretical results to obtain the optimal solution. Their inventory model is correct and interesting. However, they give the optimal solutions showing that Theorems 1 and 2 in Teng and Goyal are not complete. The main purpose of this paper is to overcome Teng and Goyal’s shortcomings and to present complete proofs of their Theorems 1 and 2.

Keywords

inventory; EOQ; two-level trade credit; permissible delay in payments

Hrčak ID:

185004

URI

https://hrcak.srce.hr/185004

Publication date:

31.1.2012.

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